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  The Advantages Of Drop Shipping  
 
Simply put, drop shipping is a type of retailing wherein the retailer does not store or stock the goods but on receiving the order forwards it to the wholesaler, who in turn dispatches the goods directly to the customer. The retailer retains the difference between the retail price and the wholesale price. Drop shipping can be very useful when you want to start your own e-commerce business. There is no need for the online retailers to hold stock. It also helps in cutting down the time taken to deliver the goods to the customers. If the warehouse is in a suitable location from the customer, it can spell very efficient and quick dispatch. If you decide on Internet retailing, the start up cost is very less with a wide range of products

Advantages

No stocks

The best advantage of the drop shipping business is that the Internet retailers do not need to maintain stock by themselves. It is not necessary for you to maintain a wholesale warehouse. All this is taken care of by the drop shipper company. You only need to take the online order and send it to the wholesaler who further takes care of the packaging and dispatching of the products to the customer. You can concentrate on the other marketing and promotional activity.

No investment on warehousing

As you will not need any place for large amount of stock, you won’t need a warehouse. The variety of costs involved in warehousing is also saved. You are saved from the high cost of building a warehouse and the high rentals involved, which can take up large amount of your margin

Low wholesale prices

As the drop shippers buy at the wholesale price they would be able to give the price advantage to you as well as customer, on the sales as well as shipping costs.

No restriction on minimum quantity

There is no restriction of maintaining a minimum quantity to be ordered. Whatever quantity is demanded, however low or high, the drop shippers execute the order accordingly, one by one.

Wider range of products
You have a wide range of products to promote from the different drop shippers you tie up with.

No Product delivery hassles

The delivery of the product is taken care of by the drop shippers. You are free from the costs and hassles of packing and delivery. If there were a large number of orders to handle every month you would find the delivery process very time consuming. In addition, you would have to put in time to maintain inventory data, packaging and shipping activities. If the drop shipper is undertaking these activities you can concentrate on your core business of marketing and promotion.

No upfront payments

You just need to start the website, deal with the drop shipper and then start processing of the orders received. As there are no stocks to be maintained, you are not under the risk of purchasing the product and being unable to sell. Your startup cost is also less, as you just need to pay deposit or make some amount of down payment to the drop shipper as commitment. Additional amount would be needed for hosting the site and advertising.

Thus drop shipping, with the least number of hassles is definitely useful when you are starting your own online business.





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